Thousands of homeowners are about to get slammed with higher monthly payments
Posted on AllSides July 3rd, 2024
From The Left
Last year, when Jennifer Hernandez received notice that the mortgage payments on her Houston home would jump about $2,000 per month, she was stunned.
Hernandez refinanced her home loan in 2016 using an adjustable-rate mortgage loan, which has a low introductory rate for a fixed initial period.
Unlike the more popular fixed-rate mortgage loans, ARMs can offer temporary relief for homebuyers who want to avoid paying higher mortgage rates — however, they also come with risk. After the fixed introductory period — usually five, seven or ten years — the rate...